Quiz Ch 22 – Cognitive Biases in Stock Purchasing

Fundamentals of Corporate Finance

Ross, Westerfield, and Jordan

13th Edition

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What cognitive bias is demonstrated by someone who believes that they will earn high returns with their next stock purchase because they earned high returns on their last six stock purchases within one year?

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  • Search Terms: a) a adjustment c) ambiguity e) an anchoring and aversion believe bias b) clustering dependence d) earned example following? frame have high illusion is last next of one purchase. purchased recency result returns same six stock the this thus, times to which will with within year. you your
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